Jackson, TN - KFC (Highland Ave)

Description:

SRS National Net Lease is pleased to offer the opportunity to acquire the fee simple interest (land & building ownership) in an absolute NNN, recently remodeled KFC investment property located in Jackson, Tennessee. The tenant recently signed a brand new 20 year lease with 4 (5-year) options to extend, demonstrating their commitment to the site. The lease features 1.5% annual rental increases, beginning in year 7, and continuing throughout the remainder of the initial term and each option period. The lease is absolute NNN with zero landlord responsibilities making it an ideal, management free investment opportunity for a passive investor. The lease is guaranteed by Tasty Chick’n, LLC, a 161-unit subsidiary of Tasty Restaurant Group, the 9th largest franchisee group in the U.S. with approximately 500 units across six brands. The store has demonstrated exceptional sales performance, with 2023 sales 115% above the national KFC AUV, marking a consistent increase over the past three years, including a 12.5% rise last year, along with strong EBITDAR coverage and a healthy rent-to-sales ratio (speak with the agents for further details).

KFC is positioned as an outparcel to the Old Hickory Mall, located along Highway 45/Highland Ave (53,580 VPD), with excellent visibility and access. The 538,641 SF Old Hickory Mall is anchored by JCPenney and Belk, attracting over 1.2 million annual visitors. The asset is positioned within an ideal retail corridor, with notable nearby developments such as the planned 20.8-acre Jackson Plaza redevelopment into a 140,000 SF event center, featuring a 6,500-7,000 person capacity, a 280-room hotel, event lawn, and surrounding retail, entertainment, and dining options. Additionally, Lynwood Place, a Kroger-anchored shopping center, is nearby, as well as major traffic drivers including I-40 (48,060 VPD), Jackson-Madison County General Hospital (642 beds), and four hotels/inns. Additionally, The Columns Development, less than 2-miles away, is a 3 million SF mixed-use space with retail, restaurants, and hotels, while Phase III is underway with additional retail, a medical facility, multifamily housing, and senior living. The site is also close to a Walmart Supercenter, Sam’s Club, Lowe’s-anchored shopping center, and other national retailers. The immediate 5-mile trade area is comprised of over 66,800 residents and 57,000 employees. Moreover, the Jackson area attracts 800,000 tourists annually and is home to key employers like Kellogg, Delta Faucet, and Toyota.